What are two exceptions to final acceptance in a contracting process?

Fraud and latent defects are recognized exceptions to final acceptance because they represent significant issues that can undermine the integrity of the contractual agreement and the quality of the deliverables.

Fraud refers to deceitful practices that may lead to the misrepresentation of the work performed or materials provided. If it is discovered that the contractor engaged in fraudulent activities, the contracting agency has grounds to withhold final acceptance until these issues are resolved, as fraud compromises the trust necessary in contractual relationships.

Latent defects are hidden flaws or deficiencies that are not immediately apparent at the time of inspection or acceptance. These might not show up until after the contract is considered complete, leading to future problems with the work product. If latent defects are discovered, they may prevent the contracting officer from finalizing acceptance, as the work delivered is not in the condition as specified in the contract.

Recognizing these exceptions helps ensure that parties involved maintain their rights and obligations under the contract, and that the deliverables meet the required standards and integrity expected in public contracts.